The Federal Reserve has terminated its specialized crypto oversight program, reverting banking practices back to standard supervisory processes. This move affects banks’ engagement with digital assets, and analysts foresee potential ripple effects on the regulatory landscape of cryptocurrency within financial services. The decision, effective August 15th, 2025, comes after years of the program managing additional oversight for banks involved in crypto activities like custody and stablecoins. While this shift may reduce compliance burdens, it also signifies a change in regulatory approach that could influence how U.S. banks interact with digital assets. The Federal Reserve’s action aligns with past regulatory shifts regarding cryptocurrency, showcasing the dynamic nature of such oversight. The program’s termination follows years of dedicated efforts to develop a thorough understanding of crypto activities and their associated risks by the Federal Reserve. This new knowledge will be incorporated into standard supervisory processes, removing the 2023 supervisory letter that had formed the basis for the program.